• Mozambique cuts fuel import bill below $1.15 billion in 2025
• Decline reflects weaker domestic demand and foreign exchange constraints
• Government explores refinery project to reduce long-term import dependence

Mozambique recorded a second consecutive annual decline in fuel import spending, according to data from the Bank of Mozambique reported on Tuesday, March 31 by Club of Mozambique.

The country reduced its fuel import bill to below €1 billion (about $1.15 billion) in 2025. This decline extended a downward trend from 2024, when the import bill stood at around $1.2 billion, compared with $1.42 billion in 2023.

Economic Pressures Weigh on Demand

The central bank stated in its latest report that post-election disruptions and financial constraints affected economic activity. These factors reduced domestic demand, including demand for energy products.

The Bank of Mozambique also highlighted pressure on foreign exchange reserves. The institution said these constraints limited the country’s ability to finance certain imports, including fuel.

However, Mozambique remains heavily dependent on imported fuel. About 80% of fuel supplies transit through the Strait of Hormuz, according to Secretary of State for Energy Amílcar Tivane in remarks reported on March 11, 2026.

The official added that the country holds strategic fuel reserves of about 75,000 tonnes. These reserves can cover national demand until early May 2026. Authorities also stated that an additional 85,000 tonnes of fuel remain stored at port terminals.

Refinery Project Targets Import Dependence

Meanwhile, Mozambique has taken steps to reduce its long-term reliance on fuel imports. Authorities have initiated plans to develop domestic refining capacity.

In May 2025, state-owned Petromoc and Nigeria’s Aiteo signed a memorandum of understanding to assess the feasibility of an oil refinery.

The proposed project targets a processing capacity of up to 200,000 barrels per day, according to officials.

The government could implement the refinery project over a period of up to 24 months, although authorities have not confirmed a formal construction timeline.

Media reports indicated that developers could execute the project in phases. The plan could start with an initial capacity of about 80,000 barrels per day and scale up progressively to 240,000 barrels per day.

Abdel-Latif Boureima